THE American boss of British Energy championed the company as the future of UK nuclear power today, using soaraway profits and increased investment to tell Prime Minister Tony Blair the atomic generator is close to being back to the top of its game.

The company today unveiled a stunning turnaround, reporting pre- tax profits of Pounds 599 million in the year to the end of March against a Pounds 303 million loss in the previous year.

"This is a strong financial performance which illustrates that recovery is well under way," said Bill Coley, the 40-year veteran of the US nuclear industry who took over as chief executive at British Energy 15 months ago "We are well on the way to realising our objectives of top-tier nuclear operations, improving financial stability and obtaining life extensions for our stations. Nuclear [because it has no carbon emissions] has a vital role to play in climate change policy," he added.

"We are investing to increase output for years to come and we have 5500 of the most skilled, experienced people in the industry. British Energy can continue to make a major contribution to the UK's energy needs."

British Energy's vast profits - just 18 months after it came out of administration - are a result of the soaring electricity price, which enabled the company to sell power for 50% more than in the previous year. The operating margin on its electricity rose to almost 30%.

That margin will becoming increasingly fat as the company said nearly three quarters of its current production is being sold at prices a third higher again this year. An investment programme of up to Pounds 300 million this year, nearly double where it was two years ago, puts output rise in line for a 5% increase this year.

Coley indicated British Energy is set to play a key role in buying Blair more time over delays in sanctioning new nuclear build. He has already ordered a 10-year extension to the life of the Dungeness power station in Kent, and is looking at going the same route with the two oldest stations in the fleet - Hinkley Point in Somerset and Hunterston on the west coast of Scotland, both commissioned 30 years ago.

He said today he would also consider extensions to the five other plants.

Black faces jail over bail 'lies' FORMER press baron Lord Black could be put behind bars to await trial next year unless he can convince a US judge he did not mislead the court on the value of collateral he put up to cover his $20 million (Pounds 10.8 million) bail.

Assistant US Attorney Eric Sussman told Chicago District Court Judge Amy St Eve Black's bail terms should be tightened or revoked because he overstated the value of a Florida home he used to back his bail bond.

Prosecutors also want to know how he paid $460,279 in property taxes if, as he said at the bail hearing, he had less than $300,000 in liquid assets.

He also reportedly donated $500,000 to a Canadian opera company.

The former Telegraph owner and other Hollinger Inc executives face trial on 12 charges of racketeering, money-laundering, wire fraud and obstruction of justice. The hearing was adjourned until Monday.

.OLD MUTUAL is to shed about 600 UK jobs in the next three years from its newly acquired Skandia life insurance arm, split between its Southampton and Isle of Man offices. Back-office IT work will move mostly to South Africa and partly to India. City jobs are on the line at investment bank Dresdner Kleinwort Wasserstein as part of a reform of the Dresdner bank operation that could see up to 1000 banking jobs go in Europe.

.WHITBREAD-owned Costa Coffee is to open its first outlet in Shanghai early next year and aims to have 300 branches in China in five years in a joint venture with Chinese group Yuenda. Chief executive Alan Parker said the 235 Beefeater and Brewers Fayre restaurants it put up for sale in April with a likely Pounds 400 million tag had attracted a high level of interest.

The future of Pizza Hut and TGI Friday's is still under review. He said first-quarter trading had been "robust".